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EC slammed for R2.7 billion wasteful expenditure

EC Legislature


The Eastern Cape's recent audit outcomes have drawn sharp criticism from political parties and public service unions, following revelations of R2.7 billion in irregular expenditure.

The Public Servants Association (PSA) expressed concern over qualified audits in key departments, including Health, Education, and the Office of the Premier.

PSA spokesperson Riaan Vosloo says the province’s critical departments — including Health, Education, and the Office of the Premier — continue to suffer from poor governance and financial mismanagement.

"The audit report underscores a persistent issue in the Office of the Premier, which has failed to address performance reporting adequately," said Vosloo.

He added that the "Eastern Cape Legislature’s regression from a clean audit to an unqualified status" is equally alarming, especially given its responsibility to uphold financial accountability."

The PSA is calling for "immediate and decisive action” to address the failures, with Vosloo urging that the Office of the Premier and the Legislature “lead by example” in ensuring transparency and the responsible use of public funds.

Vosloo further highlighted the contradiction in the Department of Health citing financial constraints while unemployed doctors and pharmacists remain without work.

“The R467 million in unauthorised expenditure and R148 million in fruitless and wasteful spending represent wasted taxpayer money that should have been allocated to critical services,” he said.

Meanwhile, opposition parties have echoed the PSA’s concerns.

The Democratic Alliance (DA) weighed in, demanding Premier Oscar Mabuyane urgently establish a Provincial Commission of Inquiry into the state of governance and infrastructure projects in the province.

In a statement, DA leader in the Bhisho Legislature, Dr Vicky Knoetze, said the Auditor-General’s findings, backed by the National Standing Committee on Public Accounts (SCOPA), confirmed a “deepening crisis of accountability, financial mismanagement, and systemic failure.”

According to Knoetze, one of the most damning findings is that provincial service delivery reporting “cannot be trusted.”

The Auditor-General was unable to verify government claims of delivering over 6,700 houses and constructing more than 3,600km of roads.

“Despite this dismal record, the province is set to receive R82.45 billion in equitable share funding for the 2025/2026 financial year. Without urgent reform, this money will remain lost to mismanagement and corruption,” Knoetze said.

She called for the immediate suspension of all implicated officials, the implementation of Treasury and AG recommendations, and independent forensic investigations into all flagged irregularities.

The DA has given Premier Mabuyane "30 days to act, if he fails to do so, the DA will open crimal cases."

Meanwhile the United Democratic Movement (UDM) said the audit outcomes reflect a failure of governance, pointing out that only nine departments received clean audits—down from 12 the previous year.

The party said the regression in key departments, especially Health and Education, was “an indictment on the provincial government’s ability to serve the people.”

The Auditor-General’s report further flagged weak performance reporting and project management across several departments, with continued issues such as delays, underutilised infrastructure, and poor oversight.

As pressure mounts, the PSA says it hopes the Eastern Cape government “will rise to the challenge and work towards regaining the trust of the people they serve by prioritising responsible financial management and effective service delivery.”